With Americans' new focus on buying products made close to home, corporations are moving quickly to co-opt the term "local." But if everything is local, is anything local?

HSBC calls itself "the world's local bank," which belies the intent of the "local" movement, a campaign to urge consumers to buy locally produced goods and support independent businesses in their hometowns.

HSBC, one of the biggest banks on the planet, has taken to calling
itself "the world's local bank." Winn-Dixie, a 500-outlet supermarket
chain, recently launched a new ad campaign under the tagline, "Local
flavor since 1956." The International Council of Shopping Centers, a
global consortium of mall owners and developers, is pouring millions of
dollars into television ads urging people to "Shop Local" — at
their nearest mall. Even Walmart is getting in on the act, hanging
bright green banners over its produce aisles that simply say
"Local."

This new variation on corporate greenwashing —
localwashing — is, like the buy-local movement itself, most
advanced in the context of food. Hellmann's, the mayonnaise brand owned
by the processed-food giant Unilever, is test-driving a new "Eat Real,
Eat Local" initiative in Canada. The ad campaign seems aimed partly at
enhancing the brand by simply associating Hellmann's with local food.
But it also makes the claim that Hellmann's is local, because most of
its ingredients come from North America.

It's not the only industrial food company muscling in on
local. Frito-Lay's new television commercials use farmers as pitchmen
to position the company's potato chips as local food, while Foster
Farms, one of the largest producers of poultry products in the country,
is labeling packages of chicken and turkey "locally grown."

Corporate localwashing is now spreading well beyond
food. Barnes & Noble, the world's top seller of books, has launched
a video blog site under the banner, "All bookselling is local." The
site, which features "local book news" and recommendations from
employees of stores in such evocative-sounding locales as Surprise,
Ariz., and Wauwatosa, Wisc., seems designed to disguise what Barnes
& Noble is — a highly centralized corporation where decisions
about what books to stock and feature are made by a handful of buyers
— and to present the chain instead as a collection of
independent-minded booksellers.

Across the country, shopping malls, chambers of commerce
and economic development agencies also are appropriating the phrase
"buy local" to urge consumers to patronize nearby malls and big-box
stores. In March, leaders of a new Buy Local campaign in Fresno,
Calif., assembled in front of the Fashion Fair Mall for a kickoff press
conference. Flanked by storefronts bearing brand names like
Anthropologie and The Cheesecake Factory, officials from the Economic
Development Corporation of Fresno County explained that choosing to
"buy local" helps the region's economy. For anyone confused by this
display, the campaign and its media partners, including Comcast and the
McClatchy-owned Fresno Bee, followed the press conference with
more than $250,000 worth of radio, TV and print ads that spelled it
out: "Just so you know, buying local means any store in your community:
mom-and-pop stores, national chains, big-box stores — you name
it."

IN ONE WAY, all of this corporate localwashing is good news for
local economy advocates: It represents the best empirical evidence yet
that the grassroots movement for locally produced goods and
independently owned businesses is having a measurable impact on the
choices people make.

"Think of the millions of dollars these big companies
spend on research and focus groups. They wouldn't be doing this on a
hunch," says Dan Cullen of the American Booksellers Association (ABA),
a trade group that represents some 1,700 independent bookstores and
last year launched IndieBound, an initiative that helps locally owned
businesses communicate their independence and community roots.

In city after city, independent businesses are
organizing and creating the beginnings of what could become a powerful
counterweight to the big-business lobbies that have long dominated
public policy. Local business alliances — like New Orleans' own
Stay Local!, the Metro Independent Business Alliance in Minneapolis-St.
Paul and Arizona Local First in Phoenix — have now formed in more
than 130 cities, counting some 30,000 businesses as members. Through
grassroots "buy local" and "local first" campaigns, these alliances are
calling on people to choose independent businesses and local products
more often and making the case that doing so is critical to rebuilding
middle-class prosperity and providing an alternative to corporate
uniformity.

Signs that consumer preferences are trending local
abound. Locally grown food has soared in popularity. The U.S. is now
home to 4,385 active farmers markets, one out of every three of which
was started since 2000. Food co-ops and neighborhood greengrocers are
on the rise. Data from several metropolitan regions show that houses
located within walking distance of small neighborhood stores have held
value better than those isolated in the suburbs where the nearest
gallon of milk requires a drive to Target.

A growing number of independent businesses are
trumpeting their local ownership and community roots and reporting a
surge in customer traffic as a result. In April, even as Virgin
Megastores prepared to shutter its last U.S. music emporium,
independent music stores across the country celebrated the second
annual Record Store Day. A simultaneous event among local music
retailers featuring in-store concerts and exclusive releases, the event
drew hundreds of thousands of music fans into stores, was one of the
top search terms on Google and triggered a 16-point upswing in album
sales, according to Nielsen SoundScan.

Surveys and anecdotal reports from business owners
suggest that these initiatives are in fact changing spending patterns.
A survey of 1,100 independent retailers conducted in January by the
Institute for Local Self-Reliance (where I work) found that, amid the
worst economic downturn since the Depression, buy-local sentiment is
giving local businesses an edge over their chain competitors. While the
Commerce Department reported overall retail sales plunged almost 10
percent over the holidays, the survey found independent retailers in
cities with buy-local campaigns saw sales drop an average of just 3
percent from the previous year.

Neighborhood markets, like the Freret Street Market, not only offer locally grown food but other products made in New Orleans.

None of this has slipped the notice of corporate
executives and the consumer research firms that advise them. Several of
these firms have begun to track the localization trend. In its annual
consumer survey, the New York-based branding firm BBMG found that the
number of people reporting locally produced products are "very
important" to them jumped from 26 to 32 percent in the last year. "It's
not just a small cadre of consumers anymore," founding partner Mitch
Baranowski says.

"Food is one of the biggest gateways, but we're seeing
this idea of 'local' spread across other categories and sectors," says
Michelle Barry, senior vice president of the Hartman Group. A report
published by Hartman last year noted, "There is a belief that you can
only be local if you are a small and authentic brand. This isn't
necessarily true; big brands can use the notion of local to their
advantage as well." Barry explains: "Big companies have to be much more
creative in how they articulate local. ... It's a different way of
thinking about local that is not quite as literal."

ONE WAY CORPORATIONS can be "local" is to stock a token amount of
locally grown produce, as Walmart has done in some of its supercenters.
The chain's local food offerings are usually limited to a few of the
main commodity crops of that particular state — peaches in
Georgia or potatoes in Maine — and sit amid a sea of industrial
food and other goods shipped from the far side of the planet. This
modest gesture has won Walmart glowing coverage in numerous daily
newspapers, few of which have asked the salient question: Does Walmart,
which now captures more than one of every five dollars Americans spend
on groceries, create more and better opportunities for local farmers
than the grocers it replaces?

Walmart, like other chains, has learned that, with
consumers increasingly motivated to support companies they perceive act
responsibly, tossing around the word "local" is a far less expensive
way to convey civic virtue than the alternatives. "Local is one of the
lower-hanging fruits in terms of sustainability," Barry explains. "It's
easier for companies to do than to improve how their employees are
treated or adopt a specific sustainability practice around their carbon
footprint, for example."

Rather than making direct claims using the word "local,"
some companies push marketing messages that work by association. One
example that caught Dan Cullen's eye was a CVS pharmacy commercial that
begins in a Main Street bookshop, following the owner around as she
tends to her customers. The bookshop then transforms into a CVS. The
bookshop owner is now the customer. The feel is still very much Main
Street. "Suddenly the kind of unique, enjoyable, grassroots bookstore
experience morphs into a CVS experience," says Cullen. "There's a
Potemkin facade that a lot of chains are trying to put up because
consumers now want something other than a cookie-cutter
experience."

Still another corporate strategy is to redefine the term
"local" to mean not locally owned or locally produced ­— but
just nearby. "With the term 'local' being so nebulous, it seems ripe
for manipulation," notes Mintel, another consumer research firm that
counsels companies on how to "craft marketing messages that appeal to
locally conscious consumers" and how to avoid "charges of
'localwashing.'" The key, Mintel says, is for companies to decide what
they mean by local and to disclose that clearly so as not to be accused
of trying to misappropriate the term.

Corporate-oriented buy-local campaigns that define
"local" as the nearest Lowe's or Gap outlet are now being rolled out in
cities nationwide. Some represent desperate bids by shopping malls to
survive the recession and fend off online competition. Others are the
work of chambers of commerce trying to remain relevant. Still others
are the half-baked plans of municipal officials casting about for some
way to stop the steep drop in sales tax revenue. And many of these
campaigns are modeled directly on grassroots initiatives.

"They copy our language and tactics," says Michelle
Long, executive director of Sustainable Connections, a seven-year-old
coalition of 600 independent businesses in northwest Washington state
that runs a very visible, and according to market research, very
successful "local first" program. "I get calls from chambers and other
groups who say, 'We want to do what you are doing.' It took me a while
to realize that what they had in mind was not what we do. Once I
realized, I started asking them: 'What do you mean by local?'"

click to enlarge

Walmart stocks a token amount of locally grown foods in its supercenters and displays ambiguous "Local" signs in its produce department.

In northern California, the Arcata Chamber of Commerce
is producing "Shop Local" ads that look similar to the Humboldt County
Independent Business Alliance's "Go Local" ads, except they feature
both independents and chains. Spokane's Buy Local program, started by
the local chamber, is open to any business in town, including big-box
stores. Log on to the Buy Local Web site created by the chamber in
Chapel Hill, N.C., and you will find Walmart among the listings.

When billboards proclaiming "Buy Local Orlando" first
appeared in Orlando, Fla., Julie Norris, a cafe owner who last year
co-founded Ourlando, an initiative to support indie businesses, was
excited to see the concept getting such visibility. But she soon
realized the city-funded program ­— which provides member
businesses with a "Buy Local" decal, seminars at the Disney
Entrepreneur Center and a listing on its Web site — was open to
any business in Orlando. "We sat down with the city and said, 'What you
guys are doing is a real disservice to the local business movement,'"
Norris says. When she complained publicly, city officials accused
Ourlando of being "exclusive" by not allowing chains.

The city did agree to remove from its press materials
and Web site a reference to a study that found that for every $100
spent locally, $45 stays in the community. The problem was that the
study, conducted by the firm Civic Economics, found that to be true
only if the money was spent at a locally owned business. Shop at a
chain store, the analysis found, and only $13 of that $100 spent stays
in the community.

The Economic Development Corporation (EDC) of Fresno
County (Calif.) also appropriated the $45-stays-local statistic when it
kicked off its Buy Local campaign at the Fashion Fair Mall. The figure
was repeated on a TV news story without any clarification that it did
not apply to the types of chains visible in the background. Like the
Orlando initiative, the Fresno campaign aims to boost sales tax revenue
by deterring online and out-of-town shopping. It goes out of its way in
every radio and TV spot to make sure people know that "local" means
national chains and big-box stores. "Buy Local" stickers and posters
are now visible on malls and chains throughout the Central Valley. "For
someone to say you are not local if you are a big box, I say baloney.
They invested here," explained Steve Geil, CEO of the EDC.

"I would prefer that the county's resources were not
being spent promoting Walmart and Home Depot," says Scott Miller, owner
of Gazebo Gardens, a plant nursery founded in 1922. "We have a great
history of being involved in community events and donating to local
causes. Our plants are grown locally. We believe that our kind of
business is more valuable to a community than any big chain."

When the city of Santa Fe, N.M., decided to launch a
campaign encouraging people to shop locally, the Santa Fe Alliance, a
coalition of more than 500 locally owned businesses that has been
running a buy-local initiative for several years, signed on. At the
March kickoff, Alliance director Vicki Pozzebon emphasized the economic
impact of shopping at a locally owned business versus a chain. "After
that, the city asked me not to push the $45 vs. $13, but just say
'local,'" Pozzebon says. Kate Noble, a city staffer who runs the
program, says the city's message is shopping at Walmart is fine, as
long as it's not walmart.com.
Pozzebon says, "It has only diluted our message and confused
people."

CAN CORPORATIONS SUCCEED in co-opting "local" — or at least
muddling the term so much it no longer has meaning? The Hartman Group's
Barry thinks that's possible. "For many consumers, these things are not
being called into question much. They say, 'Hey, it's my local Walmart
or my local Frito-Lay truck.' It depends where you are on the continuum
and how you define local, which is a term that is really up for
grabs."

Milchen is less concerned about what he calls faux-local
campaigns in cities where there is already a strong local business
organization. "It's more of an educational opportunity than a problem,
so long as they respond to it," he says. But in places where local
enterprises are not organized, he fears these corporate campaigns may
succeed in permanently defining "local" for their own benefit. Michelle
Long shares that concern: "That's my fear. People are going to do
diluted versions and hold the space so that real campaigns don't get
started."

Localwashing has prompted local business advocates to
reconsider their language. Many are now using the word "independent"
rather than "local." Controlling language is critical, says Ronnie
Cummins, director of the Organic Consumers Association, which is
pushing for tighter regulation of the word "organic," as well as rules
governing terms like natural, sustainable and local. "We've been
fighting so long without the help of federal regulators that some
people have forgotten that tool."

But perhaps localwashing will ultimately make
corporations even more suspect and further the case for shifting our
economy more in the direction of small-scale, local and independent. "I
think the fact that the chains are trying to play the local card, in a
way makes it easier for us," says the ABA's Cullen. "I think people are
going to recognize that these aren't authentic and that's going to make
the real thing all the more powerful."

Stacy Mitchell is a senior researcher with the New Rules Project
(www.newrules.org) and the
author of Big-Box Swindle: The True Cost of Mega-Retailers and the
Fight for America's Independent Businesses (Beacon, 2006).